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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Henry Volquardsen who wrote (711)	9/27/1998 6:20:00 PM
From: X Y Zebra	Respond to of 3536

There is to much disparity in global economic development for a one currency fits all approach. It is still a question, in my mind, if Europe has converged enough for the Euro. I agree 100 %.... That said I believe we will se a global currency in the next century more by default than intent. By default... I see these contenders working in opposite directions: 1. Bureaucrats, still have some power, but it is eroding. However they create these fancy "currency boards/unions" and/or "magical" bail-outs, that as pointed out are still to be proven. (the reasons against them are many). Initially, they may win if they can convince enough people that they are needed because weak economies, with large populations.... are "too large to allow to fail"..... Or.... 2. Mercenary Capitalists will dictate where Capital shall flow, according to their own standards of how countries should operate. Sounds Draconian... even impossible... but if enough people get behind them showing trust in a more drastic, and blind...Lady Justice style. Where she will wield the sword of Capital Outflow, cutting the economic head of a country, if it gets out of line of fiscal and economic discipline, at the same time rewarding with the Cornucopia of Capital inflow to those who show fiscal restrain and economic responsibility. The only problem I see.... is the continued growth in the population of the world, where we will reach a point of chaos, as people begin to step on each other's toes. (at least economically speaking). Assumptions: 1. Capital flow controls do not work... (tell the Malaysians so). 2. Free Market will [somehow] prevail, as it is known Collectivism does not function. 3. Mercenary Capitalists will always exist as so long as there will be countries that will open their doors... (I would say that is guaranteed). 4. A lunatic from the former you know who, or its neighbors, the radical terrorists, of you know who's the other... do not blow us all up with some portable nuclear calculator.... (you know what I mean...) Personally..... I would vote for the Mercenary Capitalists.... at least the intent would be clear, pure profit, anybody else is suspect. Z. p.s. only my opinion.